Levy Board predicts £5m drop in income

The future funding of racing was in crisis last night as a further drop in the sport's income was forecast. The Levy Board, which raises funds through a tax on bookmakers, said yesterday that its income for 2007/08 was expected to be only £85.5m, down from £90m in 2006/07 and 16% below the peak of £102m three years ago.

The board's statement said estimated income would remain under review during "the current very uncertain climate".

Support for the levy among the major bookmakers has been undermined by the creation of the racecourse-backed broadcaster Turf TV, now competing with the bookmaker-owned SIS to provide pictures to betting shops. Bookmakers argue that their costs have been increased and therefore their levy payments should be reduced by a similar amount.

The Levy Board's contribution to prizemoney in 2008 will be £49.5m, down from £55m this year, as a result of the decline in its income, while other regular payments to racing will also be frozen or reduced.

"We make these cuts with a heavy heart," said chairman Rob Hughes, "but continuing pressure on over-the-counter British horseracing business, together with the uncertainties created by changes in the betting shop picture market and other factors make them inevitable."

The board also agreed in principle to a Jockey Club proposal to secure the future of the National Stud, which had been threatened with closure due to a shortage of funds.